The proposed hike in GST on aerated drinks, cigarettes, and tobacco to 35% has propelled "Tobacco GST" to one of the top trending topics on Google Tuesday morning. According to Google Trends, the topic recorded 10,000 searches, reflecting a staggering 700% surge in interest in a span of just four hours this morning. The potential GST hike marks the first significant restructuring of tax rates under the Goods and Services Tax (GST) framework since its implementation seven years ago. A special rate of 35% is being considered for "sin goods," including aerated beverages, cigarettes, and tobacco-related products. This recommendation emerged from a meeting held Monday by the Group of Ministers (GoM) on rate rationalization, which finalized its report ahead of the GST Council meeting scheduled for December 21. Alongside the proposed "sin tax" rate, the GoM also suggested changes for over 148 items, including readymade garments. For garments, the GoM, led by Bihar Deputy Chief Minister Samrat Choudhary, recommended a tiered GST structure: 5% for items priced up to ₹1,500, 18% for those between ₹1,500 and ₹10,000, 28% for garments exceeding ₹10,000.
